Addressing dual embeddedness: The roles of absorptive capacity and appropriability mechanisms in subsidiary performance

Javier Cenamor, Vinit Parida, Pejvak Oghazi, Ossi Pesämaa, Joakim Wincent

Research output: Contribution to journalArticleScientificpeer-review

11 Citations (Scopus)

Abstract

This study examines how subsidiaries can manage dual embeddedness with both local partners and a multinational enterprise. Specifically, we examine the role of absorptive capacity and appropriability mechanisms on subsidiary performance. We analyse how absorptive capacity and appropriability enable subsidiaries to successfully address knowledge challenges related to internal and external networks. We conducted an empirical analysis on a sample of 165 subsidiaries. Our results suggest that absorptive capacity has a direct, positive effect on subsidiary performance, which is greater in emerging countries. The study also found an indirect effect of absorptive capacity on subsidiary performance, which is mediated through appropriability mechanisms. These findings extend the literature on international networks, dual embeddedness and absorptive capacity.

Original languageEnglish
Peer-reviewed scientific journalIndustrial Marketing Management
Volume78
Issue numberApril
Pages (from-to)239-249
Number of pages11
ISSN0019-8501
DOIs
Publication statusPublished - 22.06.2017
MoE publication typeA1 Journal article - refereed

Keywords

  • 512 Business and Management
  • Dual embeddedness
  • Absorptive capacity
  • Appropriability mechanisms
  • Emerging countries

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